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HF 5686 
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Copy 1 


Cost Keeping 


FT MEADE 
G«nCol1 


for 


Newsprint Paper Mills 





Recommended by 


COMMITTEE ON UNIFORM COST KEEPING 
NEWSPRINT SERVICE BUREAU 


COMMITTEE ON UNIFORM COST KEEPING 
CANADIAN MILLS ASSOCIATED WITH THE 
CANADIAN EXPORT PAPER CO„ Limited 


PERLEY MORSE & COMPANY 


Certified Public Accountants 


New York 


i 











Cost Keeping 

for 

Newsprint Paper Mills 


Recommended by 

COMMITTEE ON UNIFORM COST KEEPING 
NEWSPRINT SERVICE BUREAU 


COMMITTEE ON UNIFORM COST KEEPING 
CANADIAN MILLS ASSOCIATED WITH THE 
CANADIAN EXPORT PAPER CO., Limited 



9 J 
> 9 > 


PERLEY MORSE & COMPANY 


Certified Public Accountants 


New York 

C f ' r h 



- 




r*- *CTiO?y| 


*0V Jf 1919 



PRESS OF H. K. BREWER & CO. 
58 LIBERTY STREET NEW YORK 




PERLEY MORSE & COMPANY 
CERTIFIED PUBLIC ACCOUNTANTS 
SIXTY-ONE BROADWAY 
NEW YORK 

Telethons Bowling Chsen 7131 
CABLE ADDRESS “STANDIT” 


. ' ! February 15, 1919. 

Owen Shepherd, Esq., Chairman, 

Committee on Uniform Cost Keeping, 

News-Print Service Bureau. 

E. S. Coleman, Esq., Chairman, 

Committee on Uniform Cost Keeping, 

Canadian Mills, Associated with the 
Canadian Export Paper Co., Limited. 

Gentlemen: * 

In accordance with your instructions we have planned a 
system for uniform cost keeping for use in news-print paper 
mills. 

In submitting this report to you for consideration we desire 
to say that we have tried to meet all conditions surrounding the 
industry, except as to inter-company profits and losses and wood¬ 
lands operations. 

The usual fully integrated mill has been used as a standard; 
hence some parts of this system may not be necessary where a 
mill is not fully integrated. 

The addenda furnishes a plan for handling inter-departmental 
profits and losses when they appear on the books and contains the 
necessary forms to be used in reporting costs. 

We have submitted the system in full to the Federal Trade 
Commission, Washington, D. C. In connection with this we refer 
you to their letter of February 6, 1919, addressed to us, which is 
reproduced in our report. 

Respectfully submitted, 



Page 3 


CABLE ADDRESS “PRICEWATER” NEW YORK 


NEW YORK 

CHICAGO 

PHILADELPHIA 

BOSTON 

ST. LOUIS 

PITTSBURGH 

MILWAUKEE 

DETROIT 

SAN FRANCISCO 

LOS ANGELES 

SEATTLE 


Price, Waterhouse & Co 


MONTREAL LONDON 
TORONTO PARIS 

WINNIPEG PETROGRAD 
VANCOUVER 


54 WILLIAM STREET 


BUENOS AIRES CAIRO 

RIO DE JANEIRO ALEXANDRIA 

VALPARAISO 


NEW YORK 


RESIDENT PARTNERS 
G. O. MAY 
G. R. WEBSTER 
J. E. STERRETT 


February 20th, 1919. 


J. O J. J. J 

J. H. BOWMAN 
J. C. SCOBIE 


Owen Shepherd, Esq., 

Chairman, Committee on Uniform Cost Keeping, News¬ 
print Service Bureau, New York City, N. Y. 

E. S. Coleman, Esq., 

Chairman, Committee on Uniform Cost Keeping, Canadian 
Mills Associated with Canadian Export Paper Company, 

Limited, Montreal, P. Q. 

Dear Sirs: 

Pursuant to your request we have acted in an advisory 
capacity in the preparation of the uniform cost accounting system 
for the several news-print manufacturers whom you represent, 
which has been submitted by Messrs. Perley Morse & Company 
with their letter to you under date of February 15, 1919. 

Except that it does not provide for cost computations of wood¬ 
land operations, we think that the accounting principles adopted 
for the system as a whole are sound. While no doubt the system 
requires modifications in detail in order to adapt it to the require¬ 
ments of individual companies, such modifications should be made 
without altering the fundamental outline which appears to be 
sufficiently elastic to serve all purposes. On this basis we recom¬ 
mend that the committee submit the system as drafted to the 
respective manufacturers, and urge its acceptance. 

It might be mentioned here that the success of any account¬ 
ing system depends very largely upon the cooperation of all offi¬ 
cers and employees of the company, and this fact should be im¬ 
pressed upon the members of the two organizations. We suggest 
also that if the system be accepted a joint committee should be 
appointed for the purpose of advising the respective manufacturers 
in adapting it to their businesses, and of adopting any measures 
that may be deemed desirable to ensure the proper and uniform 
installation of the system at the mills. 


Yours very truly, 



Page 4 





Federal Trade Commission 


Office of the Chairman 


WASHINGTON 


February 6th, 1919. 


Dear Sirs: 

The Commission has examined with interest the proposed 
uniform cost system for news-print manufacturers designed by 
you on behalf of the Committees on Uniform Cost Keeping of the 
News-Print Service Bureau and for the Canadian Mills associated 
with the Canadian Export Paper Company, Ltd. 

It is not possible at this time to make a thorough study of this 
matter such as constructive criticism would require, but such 
examination as we have been able to make satisfies us that this 
system embodies in the main the principles of accounting on which 
the cost figures in the news-print price proceeding were based. 

We are pleased to see that this system distinguishes between 
manufacturing cost and commercial cost and that the items going 
to make up the commercial cost of news-print are kept out of 
inventory; also that finishing costs have been segregated in the 
cost of news-print roll manufacturing, so that the cost accounts 
show the unit cost for a commercial ton of paper. 

We believe that the provision for showing the cost of news¬ 
print sheets separately is an important improvement; also that 
the plan of deducting the value of by-products, such as screenings, 
from the cost of the process in which such by-products originate, 
is the correct one to follow. 

By direction of the Commission, 

Very truly yours, 

Chairman. 

To 

Perley Morse & Company, 

61 Broadway, New York City. 


Page 5 


V 


/ 


COST KEEPING FOR NEWSPRINT 

PAPER MILLS 

This system of accounts distinguishes between MANUFAC¬ 
TURING COST and COMMERCIAL COST OF GOODS SOLD. 
The latter being the sum of the Manufacturing Cost of Sales, Ship¬ 
ping Expense, Selling Expense and Administration and General 
Expense for the period. 

Inventories of Finished Goods are shown at Manufacturing 
Cost and the principle of averaging the Inventory on Hand at the 
Beginning of the Period with the Production During the Period in 
determining the Unit Cost of Goods Sold or Used is recommended. 

Costs should be calculated for bi-weekly or monthly periods 
according to the requirements of the accounting company and, 
though calculations contained herein are for monthly periods, the 
principles may be adapted to the bi-weekly closing. 


RAW MATERIAL STOCK RECORDS 

The cost system should provide, if necessary, for perpetual 
inventories to be shown by stock records for the following articles: 

COAL 
FUEL OIL 
SULPHUR 

LIME AND LIMESTONE 

WASTE PAPER. This includes all papers used in stock. 

MISCELLANEOUS STOCK MATERIALS. Namely, such 
items as: 

Fillers, including Clay, Talc, Fluorine, Starch, Rice 
Flour, Agalite, etc. 

Alum 

Bleaching Materials, including Bleach, Lime, Soda Ash, 
Vitriol, Sulphuric Acid, Caustic Soda, Alkali, 
Chloride of Lime, Acetic Acid, etc. 

Color, including Colors and Chemicals used in coloring. 
Sizing, including Rosin, Soda Ash, Silicate of Soda, Fish 
Oil, Salt, Alkali, Glue, etc. 

CONVERSION SUPPLIES. Namely such items as: 

Pulp Stones 

Screen Plates, including New Plates, New Recuts, etc. 
Wires, including Fourdrinier, Cylinder, Dandies, etc. 
Machine Clothing, including 1st, 2nd and 3rd Presses, 
Dryer Belts, Dryer Felt, Twines, Jackets, Deckle 
Cloth, Cylinder, Wire Felts, Apron Cloth, etc. 

Lubricants 

WRAPPERS 

FINISHING MATERIALS 
MISCELLANEOUS 

The above accounts are charged with the purchases including 
freight and handling into stock and are credited with the costs 
of the amounts consumed, as shown by those accounts, in the pro¬ 
duction of Ground Wood, Sulphite and Paper, leaving a balance 
representing inventory. Where several items of material are in¬ 
cluded under one heading, subsidiary stores’ records showing quan¬ 
tities and unit costs of individual items should be kept. 


Page 7 


FINISHED GOODS STOCK RECORDS 

Perpetual Inventories of the following Finished Goods should 
be kept: 

LAPPED GROUND WOOD (OWN MAKE). This ac¬ 
count is charged with the cost of Lapped Ground Wood made, 
transferred from Ground Wood Production Account, and is 
credited with the cost of the amounts sold or used, leaving a 
balance representing Inventory. 

LAPPED GROUND WOOD (PURCHASED). This ac¬ 
count is charged with purchases including freight and handling 
of Lapped Ground Wood and is credited with the cost of the 
amounts sold or used, leaving a balance representing Inventory. 
NOTE.—Intermill transfers in the same corporation are not re¬ 
garded as Purchases and Sales. See Addenda. 

LAPPED SULPHITE (OWN MAKE). This account is 
charged with the Cost of Lapped Sulphite made, transferred from 
Sulphite Production Account, and is credited with the cost of 
amounts sold or used, leaving a balance representing Inventory. 

LAPPED SULPHITE (PURCHASED). This account is 
charged with purchases including freight and handling of Lapped 
Sulphite and is credited with the cost of the amount sold or used, 
leaving a balance representing Inventory. NOTE.—Intermill 
transfers in the same corporation are not regarded as Purchases 
and Sales. See Addenda. 

UNFINISHED NEWSPRINT ROLLS. This account is 
charged with the cost of all rolls not finished during the month, 
transferred from Newsprint Rolls Production Account, and is 
credited with the cost of the amount used in making sheets, leav¬ 
ing a balance representing Inventory. 

FINISHED NEWSPRINT ROLLS. This account is 
charged with the Manufacturing Cost of Newsprint Rolls made 
and finished, transferred from Newsprint Rolls Production Ac¬ 
count, and is credited with the cost of the amount sold, leaving a 
balance representing Inventory. 

NEWSPRINT SHEETS. This account is charged with the 
Cost of Newsprint Sheets made and finished, transferred from 
Newsprint Sheets Production Account., and is credited with the 
cost of Newsprint Sheets sold, leaving a balance representing In¬ 
ventory. 

SCREENINGS. See Treatment of Screenings under Ground 
Wood and Sulphite Production Accounts. 

MANUFACTURING COST 

For the purpose of determining manufacturing cost, the pro¬ 
duction accounts as outlined below should be kept. Debit items 
have been numbered and a full explanation of each is given under 
the Details of Production Accounts. 

WATER, STEAM, AND ELECTRIC POWER 

Separate production accounts should be kept for determining 
the cost of Water Power, Steam Power and Electric Power, and 
the cost of such Power should be charged at the end of the month 
to the production of Prepared Wood, Ground Wood, Sulphite and 
Paper in proportion to the amount consumed by each. Where 
Water Power or Steam Power are used for the purpose of generat¬ 
ing Electric Power, the Electric Power Account should be charged 
with the cost of the power so used in determining the cost of 
Electric Power. 

Page 8 


ACCOUNT AA—WATER POWER PRODUCTION 

The items composing this account are classified as follows: 

Debits: 

101 Labor 

102 Water Power (Purchased) 

111 Miscellaneous Supplies 

112 Repairs 

113 Replacements 

114 Depreciation 

115 Taxes 

116 Insurance 

Credits: 

Electric Power 

Ground Wood Raw Slush 

Paper 


ACCOUNT BB—STEAM POWER PRODUCTION 

The items composing this account are classified as follows: 
Debits: 


1 

Coal 

2 

Fuel Oil 

3 

Fuel Wood 

101 

Labor 

110 

Lubricants 

111 

Miscellaneous Supplies 

112 

Repairs 

113 

Replacements 

114 

Depreciation 

115 

Taxes 

116 

Insurance 

Credits 

• 

• 

Electric Power 

Prepared Wood 

Ground Wood Raw Slush 

Sulphite Raw Slush 

Paper 

ACCOUNT 

CC—ELECTRIC POWER PRODUCTION 

The items composing this account are classified as follows 
Debits: 

101 

Labor 

102 

Water Power 

103 

Steam Power 

104 

Electric Power (Purchased) 

110 

Lubricants 

111 

Miscellaneous Supplies 

112 

Repairs 

113 

Replacements 

114 

Depreciation 

115 

Taxes 

116 

Insurance 

Credits 

• 

Prepared Wood 

Ground Wood Raw Slush 

Ground Wood Deckered Slush 

Ground Wood Lapped Stock 

Sulphite Raw Slush 

Sulphite Deckered Slush 

Sulphite Lapped Stock 

Paper 


Pag€ 9 


ACCOUNT DD—PREPARED WOOD 

Due to the dissimilar conditions surrounding the production 
of Prepared Wood in the different mills, no attempt has been 
made to standardize the accounting methods to be used. It is 
recommended that a Prepared Wood Account be kept which will 
show at the end of the year the average cost per cord of 128 
cubic feet Prepared Wood. Such cost to include all expenses in 
connection with wood up to the point of delivery to the grinder 
room or chipper room. Prepared Wood should be charged with 
Water Power, Steam Power and Electric Power consumed, with 
insurance on wood pile and wood rooms and with depreciation on 
wood handling equipment. 

It is recommended that the wood used in the manufacture 
of pulp be credited to this account at the estimated average cost 
per cord and that at the end of the year any profit or loss shown in 
this account be used as an adjustment of the cost of production 
for the year. 

ACCOUNT EE—GROUND WOOD PRODUCTION 

This account is divided into three sections, as follows: 

Section (a) Cost of Raw Slush. 

Section (b) Cost of Deckered Slush. 

Section .(c) Cost of Lapped Stock. 

The items composing these sections are classified as follows: 

SECTION (a) COST OF RAW SLUSH 


Dr. 4 

Prepared Wood 

“ 101 

Labor 

“ 102 

Water Power 

“ 103 

Steam Power 

“ 104 

Electric Power 

“ 105 

Pulp Stones 

“ 106 

Screen Plates 

“ 109 

Belting 

“ 110 

Lubricants 

“ 112 

Repairs 

“ 113 

Replacements 

“ 114 

Depreciation 

“ 115 

Taxes 

“ 116 

Insurance 

“ 117 

Manufacturing Burden 

Cr. 

Deckered Slush—Section (b) 

U 

Lapped Stock—Section (c) 

(< 

*Screenings 

SECTION (b) COST OF DECKERED SLUSH 

Dr. 5 

Raw Slush 

“ 101 

Labor 

“ 104 

Electric Power 

“ 107 

Wires 

“ 112 

Repairs 

“ 113 

Replacements 

Cr. 

Used in Newsprint 


Used in Other Papers 


SECTION (c) COST OF LAPPED STOCK 

Dr. 5 Raw Slush 
“ 101 Labor 

“ 104 Electric Power 

* See Treatment of Screenings. 

Page 10 



Dr. 107 Wires 

108 Machine Clothing 
“ 112 Repairs 

“ 113 Replacements 

Cr. Lapped Ground Wood (own make) In¬ 

ventory 

Conversion Cost Chargeable to Screenings 

ACCOUNT FF—SULPHITE PRODUCTION 

This account is divided into three sections, as follows: 
Section (a) Cost of Raw Slush 
Section (b) Cost of Deckered Slush 
Section (c) Cost of Lapped Stock 

The items composing these sections are classified as follows: 
SECTION (a) COST OF RAW SLUSH 


Dr. 4 

Prepared Wood 

“ 6 

Sulphur 

“ 7 

Lime and Limestone 

“ 101 

Labor 

“ 103 

Steam Power 

“ 104 

Electric Power 

“ 106 

Screen Plates 

" 109 

Belting 

“ 110 

Lubricants 

“ 112 

Repairs 

“ 113 

Replacements 

“ 114 

Depreciation 

“ 115 

Taxes 

“ 116 

Insurance 

“ 117 

Manufacturing Burden 

Cr. 

Deckered Slush—Section (b) 

ii 

Lapped Stock—Section (c) 

ii 

*Screenings 


SECTION (b) COST OF DECKERED SLUSH 


Dr. 8 

Raw Slush 

“ 101 

Labor 

“ 104 

Electric Power 

“ 107 

Wires 

“ 112 

Repairs 

“ 113 

Replacements 

Cr. 

Used in Newsprint 

ii 

Used in Other Papers 


SECTION (c) COST OF LAPPED STOCK 


Dr. 

8 

Raw Slush 

ii 

101 

Labor 

a 

104 

Electric Power 

a 

107 

Wires 

a 

108 

Machine Clothing 

a 

112 

Repairs 

a 

Cr. 

a 

113 

Replacements 

Lapped Sulphite (Own Make) Inventory 
*Conversion Cost Chargeable to Screening 1 


* See Treatment of Screenings . 


Page 11 



* TREATMENT OF GROUND AND SULPHITE SCREENINGS 

Where Screenings have a market value in excess of the cost of lapping 
such excess should be credited to the Cost of Razo Slush before the cost of 
that product is determined. 

Screenings are generally lapped on the same equipment that is used for 
lapping merchantable pulp and, therefore, if cost of lapping Screenings be 
credited to the total lapping cost, the amount remaining will be the amount 
applicable to merchantable pulp. In order to determine the amount of this 
credit, the sum of the items of Conversion Expense in Section C, namely :— 
(101) Labor, (104) Electric Pozver, (107) Wires, (108) Machine Clothing, 
(112) Repairs, and (113) Replacements, is d vided by the total tonnage of 
Merchantable Pulp and Screenings lapped and an average cost per ton deter¬ 
mined. This average, multiplied by the tonnage of Screenings lapped, zvill 
give the cost of lapping Screenings. 

• An account shoidd be kept for Screenings and should be charged zvith the 
cost of lapping and the excess value above such cost, and should be credited 
zvith the amount sold or used, leaving a balance representing inventory. 

ACCOUNT GG—NEWSPRINT ROLLS PRODUCTION 

i 

This account is divided into two sections, as follows: 

Section (a) Cost of Unfinished Rolls 
Section (b) Cost of Finished Rolls 

The items composing these sections are classified as follows: 
SECTION (a) COST OF UNFINISHED ROLLS 


Dr. 

9 

Ground Wood (Deckered Slush) Own Make 

a 

10 

Ground Wood (Lapped) Own Make 

66 

11 

Ground Wood (Lapped) Purchased 

66 

12 

Sulphite (Deckered Slush) Own Make 

66 

13 

Sulphite (Lapped) Own Make 

66 

14 

Sulphite (Lapped) Purchased 

66 

15 

Waste Paper 

66 

16 

Fillers 

66 

17 

Alum 

66 

18 

Bleaching 

66 

19 

Color 

66 

20 

Sizing 

66 

101 

Labor 

66 

103 

Steam Power 

66 

104 

Electric Power 

66 

106 

Screen Plates 

66 

107 

Wires 

66 

108 

Machine Clothing 

66 

109 

Belting 

66 

110 

Lubricants 

66 

112 

Repairs 

66 

113 

Replacements 

66 

114 

Depreciation 

66 

115 

Taxes 

66 

116 

Insurance 

66 

Cr. 

66 

117 

Manufacturing Burden 

Finished Rolls—Section (b) 

Unfinished Newsprint Roll Inventory 

SECTION (b) COST OF FINISHED ROLLS 

Dr. 

21 

Newsprint Rolls (Unfinished) 

66 

22 

Wrappers 

66 

23 

Cores 

66 

24 

Sundry Finishing Material 

66 

Cr. 

101 

Labor 

Finished Rolls Inventory 


Page 12 


The Cost of Unfinished Rolls—Section (a)—is calculated on the basis 
of actual paper made. 

The Cost of Finished Rolls—Section ( b)—is calculated on the basis of a 
Commercial Ton of Paper, including Wrappers but excluding Cores. 

ACCOUNT HH—NEWSPRINT SHEET PRODUCTION 

This account is kept by mills manufacturing sheets and is in¬ 
tended to show the average cost per ton of sheets produced. It 
has been found desirable in some mills, where several types of 
sheets are produced and where finishing processes vary, to find the 
cost for specific lots. In that case this control account may be 
supported by cost sheets for each lot. 

Waste Paper, resulting from cutting rolls into sheets, should 
be credited to this account on the basis of the market value of such 
waste before the average cost per ton of sheets is determined. 

This account is classified as follows: 

Dr. 21 Unfinished Newsprint Rolls 
“ 22 Wrappers 

23 Sundry Material 
“ 101 Labor" 

104 Electric Power 
Cr. Waste Paper 

* Newsprint Sheets Inventory 

COMMERCIAL COST OF SALES 

For the purpose of determining the Commercial Cost of Sales 
the accounts outlined below should be kept. 

SHIPPING EXPENSE 

This account is charged with all material, labor and expense 
in connection with loading and shipping finished products. In ar¬ 
riving at a commercial cost such expense, unless specifically 
chargeable, should be divided between products on a tonnage 
b aS is 

SELLING EXPENSE 

Any selling expenses such as Salaries in Sales Offices, Adver¬ 
tising, Rent, Stationery and Printing, Telephone and Telegraph, 
etc., are included under this heading, and in arriving at a com¬ 
mercial cost, where not specifically assignable, should be distrib¬ 
uted between products sold on a basis of relative selling price. 

ADMINISTRATION AND GENERAL EXPENSE 

Expenses of this nature should not be included in manufactur¬ 
ing burden, and in arriving at a commercial cost should be divided 
between products sold on the basis of relative Manufacturing 
Costs, and Selling Expenses. Under this heading are included 

Salaries of General Officers not assigned to production 
or sales 

Accounting Department 

Legal Expense 

General Office Rent 

Telephone and Telegraph 

Stationery and General Office Supplies 

Bank Charges 

Capital Stock Taxes 

Mercantile Agencies 

Association Dues 

Collection Expense 

Etc. 


Page 13 


DETAILS OF PRODUCTION ACCOUNTS 

(1) COAL 

Account BB—Steam Power. This item is charged with the 

coal consumed during the month in the production of Steam and 

Coal Inventory is credited. 

* 

(2) FUEL OIL 

Account BB—Steam Power. This item is charged with the 
Fuel Oil consumed during the month in the production of Steam 
and Fuel Oil Inventory is credited. 

(3) FUEL WOOD 

Account BB—Steam Power—This item is charged with Fuel 
Wood consumed during the month in the production of Steam and 
Fuel Wood Inventory is credited. 

(4) PREPARED WOOD 

Account EE — Ground Wood Section (a)—This item is 
charged with the estimated cost of Prepared Wood used in the 
manufacture of Ground Wood Raw Slush and Account DD 
Prepared Wood is credited. Standard cords of 128 cubic feet. 

Account FF—Sulphite Section (a)—This item is charged 
with the estimated cost of Prepared Wood used in the manufacture 
of Sulphite Raw Slush and Account DD Prepared Wood is credited. 
Standard cords of 128 cubic feet. 

(5) GROUND WOOD RAW SLUSH 

Account EE — Ground Wood Section (b)—This item is 
charged with the cost of Ground Wood Raw Slush deckered, and 
Section (a) of the same account is credited. 

Account EE — Ground Wood Section (c)—This item is 
charged with the cost of Ground Wood Raw Slush lapped, and 
Section (a) of the same account is credited. 

(6) SULPHUR 

Account FF—Sulphite Section (a)—This item is charged 
with the cost of Sulphur used in the manufacture of Sulphite Slush 
and Sulphur Inventory is credited. 

(7) LIME AND LIMESTONE 

Account FF—Sulphite Section (a)—This item is charged 
with the cost of Lime or Limestone used in the manufacture of 
Sulphite Slush and Lime and Limestone Inventories are credited. 

(8) SULPHITE RAW SLUSH 

Account FF—Sulphite Section (b)—This item is charged with 
the cost of Sulphite Raw Slush deckered, and Section (a) of the 
same account is credited. 

Account FF—Sulphite Section (c)—This item is charged with 
the cost of Sulphite Raw Slush Lapped and Section (a) of the 
same account is credited. 

(9) GROUND WOOD (DECKERED SLUSH) OWN MAKE 

Account GG—Section (a)—Unfinished Rolls. This item is 
charged at cost or at a transfer value with the amount used in the 
manufacture of rolls. If charged at cost, Account EE—Section 
(b) is credited with the full amount. If charged at a transfer 
value, Reserve for Interdepartmental Profit and Loss on News¬ 
print (see Addenda) is charged or credited with the difference 
between cost and such transfer value, according as the price is 
above or below cost. 

Page 14 


(10) GROUND WOOD (LAPPED) OWN MAKE 

Account GG—Section (a)—Unfinished Rolls. This item is 
charged at cost or at a transfer value with the amount used in the 
manufacture of rolls. If charged at cost Lapped Ground Wood 
(Own Make) Inventory is credited with the full amount. If 
charged at a transfer value Reserve for Interdepartmental Profit 
and Loss on Newsprint (see Addenda) is charged or credited with 
the difference between cost and such transfer value according as 
the price is above or below cost. 

(11) GROUND WOOD (LAPPED) PURCHASED 

Account GG—Section (a)—Unfinished Rolls. This item is 
charged at cost with the amount used in the manufacture of rolls 
and Lapped Ground Wood (Purchased) Inventory is credited. 

(12) SULPHITE (DECKERED SLUSH) OWN MAKE 

Account GG—Section (a)—Unfinished Rolls. This item is 
charged at cost or at transfer value with the amount used in the 
manufacture of rolls. If charged at cost, Account EE—Section 
(b) is credited with the full amount. If charged at a transfer 
value, Reserve for Interdepartmental Profit and Loss on News¬ 
print (see Addenda) is charged or credited with the difference 
between cost and such transfer value according as the price is 
above or below cost. 

(13) SULPHITE (LAPPED) OWN MAKE 

Account GG—Section (a)—Unfinished Rolls. This item is 
charged at cost or at a transfer value with the amount used in the 
manufacture of rolls. If charged at cost Lapped Sulphite (Own 
Make) Inventory is credited with the full amount. If charged at 
a transfer value Reserve for Interdepartmental Profit and Loss 
on Newsprint (see Addenda) is charged or credited with the 
difference between cost and such transfer value according as the 
price is above or below cost. 

(14) SULPHITE (LAPPED) PURCHASED 

Account GG—Section (a)—Unfinished Rolls. This item is 
charged at cost with the amount used in the manufacture of rolls 
and Lapped Sulphite (Purchased) Inventory is credited. 

(15) WASTE PAPER 

Account FF—Section (a)—Newsprint Rolls. This is charged 
with waste paper consumed in the manufacture of Newsprint Rolls 
and Waste Paper Inventory is credited. 

(16) FILLERS 

Account GG—Section (a)—Newsprint Rolls. This item is 
charged with Fillers consumed in the manufacture of Newsprint 
Rolls and Fillers Inventory is credited. 

(17) ALUM 

Account GG—Section (a)—Newsprint Rolls. This item is 
charged with Alum consumed in the manufacture of Newsprint 
Rolls and Alum Inventory is credited. 

(18) BLEACHING 

Account GG—Section (a)—Newsprint Rolls. This item is 
charged with Bleaching Materials consumed in the production of 
Newsprint Rolls and Bleaching Inventory is credited. 


Page 15 


(19) COLOR 

Account GG—Section (a)—Newsprint Rolls. This item is 
charged with color consumed in the manufacture of Newsprint 
Rolls and Color Inventory is credited. 

(20) SIZING 

Account GG—Section (a)—Newsprint Rolls. This item is 
charged with Sizing consumed in the manufacture of Newsprint 
Rolls and Sizing Inventory is credited. 

(21) UNFINISHED ROLLS 

Account GG—Section (b). This item is charged with the cost 
of Unfinished Rolls finished and Section (a) of the same account 
is credited. 

Account HH—This item is charged with the cost of Un¬ 
finished Rolls used in making sheets and Unfinished Rolls In¬ 
ventory is credited. 


(22) WRAPPERS 

Account GG—Section (b). This item is charged with the 

cost of wrappers used in finishing of Rolls and Wrappers Inven- 

torv is credited. 

* 

Account PIH. This item is charged with the cost of wrappers 
used in finishing Sheets and Wrappers Inventory is credited. 

(23) CORES 

Account GG—Section (b)—Cores should be billed separately 
from paper and this item is chargeable only with the estimated 
annual depreciation on iron, wood and paper cores and with ex¬ 
penses in connection with returned cores. Such depreciation and 
expense should be taken up on a tonnage basis. 

(24) SUNDRY FINISHING MATERIALS 

Account GG—Section (b). This item is charged with all 
other materials used in finishing Rolls such as Paste, Glue, etc., 
and Finishing Materials Inventory is credited. 

Account HH. This item is charged with all other materials 
used in finishing sheets and Finishing Materials Inventory is 
credited. 

(101) LABOR (Manufacturing) 

The general payroll should be so classified that each account 
and section thereof can be charged with all labor applicable to the 
process. Labor not specifically assignable should be charged to 
Manufacturing Burden. The divisions below show the items of 
labor chargeable to the various accounts. If desired analysis of 
labor may be shown on the cost sheet according to respective op¬ 
erations in the processes. 

Labor in Repairs or Replacements is not included under this 
heading but is chargeable to the cost of repairs or replacements 
as described later. 

Account AA—Water Power. This item is charged with 
labor in connection with conduits and water wheels. 

Account BB—Steam Power. This item is charged with labor 
of fireroom engineers and assistants, water tenders, firemen, coal 
handlers, ash handlers, boiler cleaners, feed pump men, etc. 

Account CC—Electric Power. This item is charged with all 
labor of operating prime movers in the electric plant, generators, 
switchboards, etc. 

Page 16 


Account EE—Ground Wood—Section (a) Slush. This item 
is charged with all labor in Grinder Room and Screen Room and 
such miscellaneous labor as is directly applicable to the produc¬ 
tion of Ground Wood Slush. 

Account EE—Ground Wood—Section (b) Deckers. This item 
is charged with all labor in the operation of Ground Wood Deckers. 

Account EE—Ground Wood—Section (c) Laps. This item is 
charged with all labor in connection with Wet Presses and Hy¬ 
draulic Presses and with the Piling of Lapped Stock. 

Account FF—Sulphite—Section (a) Slush. This item is 
charged with all labor in Chipper Room, Acid Systems, Digesters, 
Screen Room and such miscellaneous labor as is directly applicable 
to the production of Sulphite Slush. 

Account FF—Sulphite—Section (b) Deckers. This item is 
charged with all labor employed in the operation of Sulphite 
Deckers. 

Account FF — Sulphite — Section (c) Laps.—This item is 
charged with all labor in connection with Wet Presses, Hydraulic 
Presses and with the Piling of Lapped Stock. 

Account GG—Newsprint Rolls—Section (a). This item is 
charged with all labor in Beater and Machine Rooms. 

Account GG—Newsprint Rolls—Section (b). This item is 
charged with all labor employed in the finishing of rolls. 

Account HH—Newsprint Sheets. This item is charged with 
all labor employed in cutting and finishing Newsprint sheets. 

(102) WATER POWER 

At the end of the month Account AA, Water Power Produc¬ 
tion, is closed and the total cost is distributed to the processes 
using such power. The unit cost per horse-power hour is de¬ 
termined and the charges to the various processes are made on 
the basis of the quantity used by each. This system provides only 
for distribution between 

Account CC—Electric Power 
Account EE—Ground Wood 
Account GG—Paper 

The scheme is capable, however, of being adapted to the needs 
of the accounting company. 

(103) STEAM POWER 

At the end of the month Account BB, Steam Power Produc¬ 
tion, is closed and the total cost is distributed to the processes using 
such power. The unit cost per thousand feet of steam generated 
is determined and the charges to the various processes are made 
on the basis of the quantity consumed by each. This system pro¬ 
vides for distribution between 

Account CC—Electric Power 
Account EE—Ground Wood 
Account FF—Sulphite 
Account GG—Newsprint Rolls 

However, the scheme may be expanded to meet the needs of the 
accounting company. 

(104) ELECTRIC POWER 

At the end of the month Account CC, Electric Power Produc¬ 
tion, is closed and the total cost distributed to the processes using 
such power. The unit cost per kilowatt hour is determined and 
the charges to the various processes are made on the basis of the 

Page 17 


quantity consumed by each. This system provides for distribu¬ 
tion between 

Account EE—Ground Wood—Sections (a), (b), and (c) 
Account FF—Sulphite—Sections (a), (b), and (c) 
Account GG—Newsprint Rolls—Sections (a) and (b) 
Account HH—Newsprint Sheets 
As in previous accounts the scheme is capable of expansion. 

(105) PULP STONES 

Account EE—Ground Wood—Section (a). This item is 
charged with the cost of Pulp Stones used in the manufacture of 
Ground Wood Slush and Pulp Stones Inventory is credited. 

(106) SCREEN PLATES 

Account EE—Ground Wood—Section (a) 

Account FF—Sulphite—Section (a) 

Account GG—Newsprint Rolls — Section (a). These 
items are charged with the Screen Plates used in the manu¬ 
facture of the above products and Screen Plates Inventory is 
credited. 

(107) WIRES 

Account EE—Ground Wood—Sections (b) and (c). 
Account FF—Sulphite—Sections (b) and (c) 

Account GG — Newsprint Rolls — Section (a). These 
items are charged with the cost of wires used in the manu¬ 
facture of the above products and Wires Inventory is credited 

(108) MACHINE CLOTHING 

Account EE—Ground Wood—Section (c) 

Account FF—Sulphite—Section (c) 

Account GG — Newsprint Rolls — Section (a). These 
items are charged with the cost of Machine Clothing used in 
the manufacture of the above products and Machine Clothing 
Inventory is credited. 

(109) BELTING 

Account EE—Ground Wood—Section (a) 

Account FF—Sulphite—Section (a) 

Account GG—Newsprint Rolls — Section (a). These 
items are charged with the cost of belting and belting sup¬ 
plies renewed and Belting Inventory is credited. 

(110) LUBRICANTS 

Account BB—Steam Power 

Account CC—Electric Power 

Account EE—Ground Wood—Section (a) 

Account FF—Sulphite—Section (a) 

Account GG—Newsprint Rolls — Section (a). These 
items are charged with the cost of lubricants used and Lubri¬ 
cants Inventory is credited. 

(Ill) MISCELLANEOUS SUPPLIES 

Manufacturing Burden: 

Account AA—Water Power 
Account BB—Steam Power 
Account CC—Electric Power 

These items are charged with the cost of supplies not speci¬ 
fically enumerated, such as Rubber Boots, Oil Cans, Waste, 
Shovels, Brooms, Lanterns, etc., and Miscellaneous Supplies In¬ 
ventory is credited. 

Page 18 


(112-113) REPAIRS AND REPLACEMENTS 

Distinction Between Additions and Improvements, Repairs 

and Replacements 

Additions and Improvements 

The term “Additions and Improvements” embraces all such 
expenditures made for New Buildings and Machinery, Additions 
to Existing Buildings and Machinery, and Excess Value of Re¬ 
placements when a replacement made exceeds the amount it 
would have cost to replace the property as it was originally con¬ 
structed. Such additions and improvements should increase the 
standard of earning power of the original investment in the mill 
either by enlarged facilities or by substantially decreasing costs 
and expenses. 

Repairs (Material and Labor) 

This includes all current expenditures recurring from day to 
day on the general upkeep of existing properties, without the en¬ 
tire replacement of any substantial part or unit thereof, as outlined 
under “Replacements.” It will, of course, include certain replace¬ 
ments of small parts that are not substantial parts or units, and 
all necessary repairs resulting from breaks, leaks and other various 
causes to the small parts of buildings and machinery. 

Replacements (Material and Labor) 

This includes all substitutions for capital exhausted or become 
inadequate in service, the substitutions having substantially no 
greater capacity than the things for which they were substituted. 
When a substitute has a substantially greater capacity than that 
for which it is substituted, the cost of an article of the same capacity 
as the one replaced would constitute a replacement, the remaining 
portion of the cost of the actual substitute would constitute an 
improvement. 

There are no hard or fixed lines that can be drawn between 
“Replacements” and “Repairs,” but those substantial portions of 
a building or machine that tend to prolong the entire life of the 
building or machinery must be taken as the basis. The replace¬ 
ment of a bolt, nut, screw or some other small part of a machine 
would be a repair, not a replacement; but if the unit or part itself 
was replaced it would be a replacement, provided the replacement 
of the part was made because it had become obsolete or inadequate, 
or because it had become broken or worn out through the general 
operation of the machinery. If the part was broken through acci¬ 
dent, it would be a repair and should not be charged as a replace¬ 
ment. 

The units of a building are its walls, floors, roofs, doors and 
windows, and the replacement of any of these parts in whole may 
be chargeable as a replacement. 

The units of a machine are the separate substantial parts of 
the machine which serve separately in its construction or opera¬ 
tion. These do not, of course, embrace bolts, nuts, screws or such 
small parts as belong to units or substantial parts, but the larger 
parts necessary to the main operation of the machine, and the re¬ 
placement of any such parts is properly a charge to Replacements. 
For example, if one or two boiler tubes were replaced, it would be 
a Repair, but if all the tubes, or the major part of them, were re¬ 
placed it would be a Replacement. 

The cost of Additions and Improvements, Replacements or 
Repairs, when made by the accounting company, should include 
cost of labor expended and material used, less salvage, if any. 

It is recommended that a job order which will fully describe 
the character of the work and show the material and labor con- 

Page 19 


sumed be kept for each replacement and addition and improve¬ 
ment made. 

Whether Replacements shall be charged to costs or not is left 
to the judgment of the accounting company. But where they are 
of substantial amounts it is recommended that they be spread over 
a period of time in order that the costs in any one month may not 
violently fluctuate. This applies to extraordinary repairs as well 
as replacements. 

Provisions are made in these accounts for charging Repairs 
and Replacements to the following: 

Account AA—Water Power 
Account BB—Steam Power 
Account CC—Electric Power 
Account DD—Prepared Wood 

Account EE—Ground Wood—Sections (a), (b), and (c) 
Account FF—Sulphite—Sections (a), (b), and (c) 
Account GG—Newsprint Rolls—Sections (a) and (b) 

Distribution between processes should be made direct wher¬ 
ever possible, and where not, the item should be charged to Manu¬ 
facturing Burden and distributed with other items of that account. 

(114) DEPRECIATION 

Depreciation should be charged to the various processes upon 
the basis of the total value of equipment in each, and should be 
charged to the various accounts as outlined below. 

Account AA—Water Power. This item is charged with one- 
twelfth of the estimated annual depreciation on dams, water¬ 
ways, etc. 

Account BB—Steam Power. This item is charged with one- 
twelfth of the estimated annual depreciation on boilers, boiler 
room equipment, ash conveyors, coal conveyors and steam plant 
structure. 

Account CC—Electric Power. This item is charged with one- 
twelfth of the estimated annual depreciation on all prime movers 
used in generating electric power, dynamos, switchboards, trans¬ 
formers, transmission lines and electric plant structures. 

Account EE—Ground Wood—Section (a). The total esti¬ 
mated depreciation per annum on Ground Wood equipment 
should be divided by the estimated annual production in tons and 
a unit cost per ton determined. The actual tonnage production 
for the month should be multiplied by this unit cost per ton to 
arrive at the monthly charge. Any excess or shortage at the end 
of the year can be provided for by a retroactive adjustment. 

Account FF—Section (a) Sulphite 

Account GG—Section (a) Newsprint Rolls 

The depreciation charges to these accounts should be de¬ 
termined in a similar manner to that described above for Account 
EE Ground Wood. 

(115) TAXES 

A general account for taxes on land, buildings, etc., is set up 
on the books and is charged with all payments thereof. The ac¬ 
count is credited each month with the estimated amount accrued 
which is distributed to 

Account AA—Water Power 
Account BB—Steam Power 
Account CC—Electric Power 
Account DD—Prepared Wood 


Page 20 


Account EE—Ground Wood—Section (a) 

Account FF—Sulphite—Section (a) 

Account GG—Newsprint Rolls—Section (a) 

in accordance with the estimated taxable value of the property 
used by each process. Excess Profits, Income or Business Profits 
Taxes are not included under this heading. 

(116) INSURANCE 

A general account for Prepaid Insurance is set up on the books 
for all fire, accident and employers’ liability insurance, and is 
charged with all premiums paid. The account is credited each 
month with the proportion expired which is distributed to 

Account A A—Water Power 

Account BB—Steam Power 

Account CC—Electric Power 

Account DD—Prepared Wood 

Account EE—Ground Wood—Section (a) 

Account FF—Sulphite—Section (a) 

Account GG—Newsprint Rolls—Section (a) 

in accordance with the estimated insurable value of the property 
used by each process. 

(117) MANUFACTURING BURDEN 

An account is kept for Manufacturing Burden to which is 
charged all items of manufacturing expenses not directly ap¬ 
plicable to production accounts. The classification of such 
charges is governed entirely by the conditions surrounding each 
mill and therefore only a general idea can be given. The follow¬ 
ing is an outline of some items within the meaning of this account 
and it is recommended that a similar analysis be kept: 

Mill Superintendence 

Mill Office Salaries and Expenses 

Chemical Laboratory Salaries and Expense 

Barn and Teaming 

Switching 

Demurrage 

Miscellaneous Supplies 
General Repairs not specifically applied 
Yard Expense 
Purchasing Department 

Salaries of Officers assigned to Manufacturing 

Profit or Loss on Hotel and Boarding Houses 

Profit or Loss on Theaters 

Profit or Loss on Townsites 

School Taxes 

Etc. 

This account is credited with the amounts distributed to 

Account EE—Ground Wood Production—Section (a) 
Account FF—Sulphite Production—Section (a) 

Account GG—Newsprint Rolls Production—Section (a) 

It is recommended that this account be worked on a budget 
scheme and that one-twelfth the estimated annual total be written 
ofT each month. Distribution between Ground Wood, Sulphite 
and Paper should be made on a tonnage basis figuring two tons 
of Ground Wood as equal to one ton of Sulphite or Paper. 


Page 21 


ADDENDA 


INSTRUCTIONS FOR HANDLING INTER¬ 
DEPARTMENTAL PROFITS AND LOSSES 

It has been found necessary to provide for unusual conditions 
arising in the accounting systems of some of the large companies, 
as described below. 

Case 1. Where a company owning several mills, each 
having an independent accounting system, transfers Ground 
Wood or Sulphite between mills at a value greater or less than 
cost, commonly known as a transfer value, thus creating an 
intermill profit or loss. 

Case 2. Where a mill manufacturing Ground Wood, 
Sulphite and Paper charges such Ground Wood and Sulphite 
to Paper at a transfer price, thus creating an interdepartmen¬ 
tal profit or loss. 

The following accounts are used in Case 1. Inasmuch as 
Ground Wood and Sulphite are handled in an identical manner, 
the illustration serves for both: 

TRANSFERS OUT (Ground Wood) 

TRANSFERS OUT (Sulphite) 

These accounts are kept by the shipping mill and are charged 
with: 

1. The actual cost of the product shipped. 

2. With the balance of profit at the end of the month if the 

shipments have been billed above cost. Such profit 
being transferred to the receiving mill or general office 
books. 

The accounts are credited with: 

1. With the billing of products shipped. 

2. With balance of loss for the month if shipments have been 

billed below cost. Such loss being transferred to the 
receiving mill or general office books. 

TRANSFERRED GROUND WOOD INVENTORY 
TRANSFERRED SULPHITE INVENTORY 

These accounts are kept by the receiving mill and are charged 
with: 

1. With products received by transfer at billing price and 
with freight and cartage thereon. 

These accounts are credited with: Amount used in the manu¬ 
facture of paper 
Page 22 



RESERVE FOR TRANSFERRED GROUND WOOD 

INVENTORY 


RESERVE FOR TRANSFERRED SULPHITE 

INVENTORY 

These accounts are kept by the receiving mill and intended 
to show the amount by which the Inventories of Transferred 
Products are over or understated. These accounts are charged 
or credited as follows. 

If the transfers received during the month were billed above 
cost these accounts are credited with the profit transferred from 
the shipping mill. 

If the transfers received during the month were billed below 
cost, these accounts are charged with the loss transferred from 
the shipping mill. 

After the above items are entered the account will show a 
debit or a credit balance accordingly as the Inventory Accounts 
of Transferred Products have been over or undercharged. For in¬ 
stance, if Mill A has shipped to Mill C 20 tons at $10.00 above cost 
and Mill B has shipped Mill C 30 tons at $10.00 below cost, the 
entries to this account at Mill C would be 

30 tons at $10.00 below = $300.00 debit. 

20 tons at $10.00 above = $200.00 credit. 

Balance 50 tons at $2.00 below = $100.00 debit, or in other 
words the average ton of product received during the month was 
billed at $2.00 below cost. 

This account is further charged or credited with the amount 
of profit or loss on transferred products used in the manufacture 
of paper. In the example shown above, suppose 40 of the tons to 
have been used in Newsprint Paper: 

50 tons at $2.00 below = $100.00 debit, 

40 tons at $2.00 below = $80.00 credit. 

Balance 10 tons at $2.00 below = $20.00 debit, represent¬ 
ing the amount by which the remaining inventory is understated. 
The credit of $80.00 is charged to Reserve for Interdepartmental 
Profit or Loss on Newsprint Rolls and represents the amount of 
loss by which the cost of Newsprint Rolls is understated. 

The following account is used in connection with Case 1 and 
also provides for Case 2. 

RESERVE FOR INTERDEPARTMENTAL PROFIT OR 

LOSS ON NEWSPRINT 

This account should show at the end of each month all profit 
or loss taken on interdepartmental or intermill transactions. It 
is charged with: 

1. The amount transferred from Inventory Reserve in Case 1 

when the transactions result in a loss. 

2. With the difference between cost and the transfer price 

used in Case 2 when the transaction results in a loss. 

Page 23 


The account is credited with: 

1. The amount transferred from Inventory Reserve in Case 1 

when the transaction results in a profit. 

2. With the difference between cost and the transfer price 

used in Case 2 where the transaction results in a profit. 


Page 24 


FORMS 

The Forms shown in the Exhibits enumerated below are part 
of the accounting system, and serve to show the information which 
should be available at the end of each period. The statistical 
data given has been found desirable in some mills and may be 
elaborated to suit individual requirements. 

Exhibit AA—WATER POWER 
Exhibit BB—STEAM POWER 
Exhibit CC—ELECTRIC POWER 
Exhibit EE—GROUND WOOD 
Exhibit FF—SULPHITE 
Exhibit GG—NEWSPRINT ROLLS 
Exhibit HH—NEWSPRINT SHEETS 


EXHIBIT AA 

WATER POWER 

Month of.191.. 



MONTH 

TO DATE 

PERIOD 

TO DATE 

Labor . 



Water Power (Purchased) . 



Repairs . 



Replacements . 



Depreciation. 



Taxes . 



Insurance . 



TOTAL . 








H. P. 

CONSUMED 

DISTRIBUTION 
OF COST 
FOR MONTH 

Paper . 



Ground Wood. 



Rlertric Power. 



TOTAL . 







Unit Cost Per H. P. Hour. 


Page 25 









































EXHIBIT BB 


STEAM POWER 


Month of 


191.. 



MONTH 

TO DATE 

PERIOD 

TO DATE 

Coal . , , , - , . 



Fuel Oil . 



T_abr>r , ... . 



T.iihrirants . 



Miscellaneous Supplies . 



Renairs . 



Replacements . 



Depreciation . 



Ta*es , , , t» t,. 



Insurance . 



TOTAL . 







DISTRIBUTION 

TONS 

PRODUCED 

M. LBS. 
STEAM 
USED 

COAL 

USED 

LBS. COAL 
PER TON 
PRODUCED 

DISTRIBUTION 
OF COST 
FOR MONTH 

Paper . 






Sulphite . 






Ground Wood. 






Prepared Wood. 






TOTAL . 













PERIOD 

MONTH XO DATE 


Cost of Steam per 1,000 lbs 


Lbs Water Evaporated_ 

Lbs. Water Evaporated per lb. Coal Combustible. 
Lbs. Water Evaporated per lb. Coal Actual_ 


EXHIBIT CC 

ELECTRIC POWER 


Month of...191.. 



MONTH 

TO DATE 

PERIOD 

TO DATE 

Lahor . 



Water Power. 



Steam Power. .. 



Electric Power (Purchasec 
Luhricants . 

1). 






Miscellaneous Supplies . 



Repairs . 



Replacements . 



Depreciation. 



Taxes .,.. 



Insurance . 



TOTAL.. 






DISTRIBUTION 

TONS 

USED 

K. W. HOURS 
PRODUCED 

K. W. HOURS 
PER TON 
PRODUCED 

DISTRIBUTION 
OF COST 
FOR MONTH 

Paper . 





Sulphite . 





Ground Wood. 





Prepared Wood. 





TOTAL . 










Cost of Electricity per K. 

W. hour. 

MONTH 

PERIOD 

TO DATE 





Page 26 

























































































































EXHIBIT EE 


GROUND WOOD 


Month of 


191.. 


v' 


TIME RECORD 


GRINDER 

HOURS 


PRODUCTION 


MONTH 


PERIOD 
TO DATE 


Time Run . 

Sundays and Holidays.... 
Shut Down for Power.... 
Shut Down for Other Rea¬ 
sons . 

Total Hours . 


Number 1 . 

Number 2 . 

Total Merchantable Pulp... 

Screenings . 

Production of Merchantable 
Pulp per Cord of Wood.. 


AMOUNT 


COST PER TON 


MONTH 
TO DATE 


PERIOD 
TO DATE 



MANUFACTURING COST OF RAW SLUSH: 
Stock: 

Prepared Wood, Cords _@_ 

Conversion: 

Labor . 

Water Power 
Steam Power 

Electric Power. 

Pulp Stones. 

Screen Plates . 

v Belting. 

Lubricants . 

Repairs. 

Replacements . 

Depreciation . 

Taxes . 

Insurance . 

Manufacturing Burden 


Total Conversion. 

TOTAL . 

Deduct: Screenings . 

TOTAL MANUFACTURING COST OF RAW SLUSH 

Tons Produced _ 


MANUFACTURING COST OF DECKERED SLUSH: 
Stock: 

Raw Slush— Tons . . 

Conversion: 

Labor. 

Electric Power . 

Wires. 

Repairs. 

Replacements . 

Total Conversion. 

TOTAL MANUFACTURING COST OF DECKERED 

SLUSH . 

Tons Produced _ 

Used in Nezusprint—Tons _ 

Used in Other Papers—Tons _ 


MANUFACTURING COST OF LAPPED STOCK: 

Stock: 

Raw Slush —Tons . . 

Conversion: Merchantable Pulp—Tons _ 

Screenings—T ons _ 

Labor . 

Electric Power. 

Wires . 

Machine Clothing . 

Repairs. 

Replacements . 

Total Conversion. 

Deduct: Cost of Lapping Screenings —Tons _ 

Conversion Cost of Merchantable Pulp —Tons _ 

TOTAL MANUFACTURING COST OF LAPPED STOCK 
Add: Inventory—Beginning- 

TOTAL . 

Deduct: Inventory—End_ 

TOTAL .. 

Deduct: Used in Paper, etc.— Tons _ 

MANUFACTURING COST OF SALES —Tons _ 

SHIPPING EXPENSE . 

SELLING EXPENSE .. 

ADMINISTRATION AND GENERAL EXPENSES. 

COMMERCIAL COST OF SALES. 

NET INCOME FROM SALES.. 

SALES . 































































































































































































EXHIBIT FF 


SULPHITE 

Month of.191. • 




.«* V ' 


* _ •: • 


-■tVC. 


TIME RECORD 

DIGESTER 

HOURS 

PRODUCTION 

MONTH 

TO DATE 

PERIOD 

TO DATE 



No 1 . 



Shill' dnwri for Fillinp - . . 


No. 2 . 



Shut down for Repairs... 


Total Mercha 

.Screenings 

ntable Pulp.... 



Shut down for Sundays and 
Holidays . 






Production of Merchanta¬ 
ble Sulphite: 



Shut down for other Rea- 

sons 



Per Cor 
Per Dig 

Sulphur Used 
Lime Used p 

d of Wood. 

Total ITrmrs 


ester Cook. 






per Ton . 




Average Time per Cook.. 

er Ton 







AMOUNT 

COST PER TON 

MONTH 

TO DATE 

PERIOD 

TO DATE 

MANUFACTURING COST OF RAW SLUSH: 

Stock: 

Prepared Wood, Cords (ri) 
















Conversion: 

Labor 











Tulprtrir Power 




Screen Plates 




Belting 




T.11 hr i rants 




Repairs 




Replacement^ 




Depreciation . 




Taxes 




Insurance . 




Manufacturing Burden . 




Total Conversion. 




TOTAL . 


-- 


Deduct: Screenings . 




TOTAL MANUFACTURING COST OF R, 

Tons Produced 

A.W SLUSH.. 









MANUFACTURING COST OF DECKERED SLUSH: 
Stock: 

Raw Slush — Tons . 




Conversion: 




Labor . 




Electric Power. 




Wires . 




Repairs . 




Replacements . 




Total Conversion. 




TOTAL MANUFACTURING COST OF DECKERED 
SLUSH . 




Tons Produced 

Used in Newsprint s Tons 

Used in other Papers t Tons 





MANUFACTURING COST OF LAPPED STOCK: 
Stock: 

Raw Slush —Tons . 




Conversion: Merchantable Pulp—Tons 



~ 

S creenings—T ons 




Labor . 




Electric Power. 




Wires . 




Machine Clothing . 




Repairs . 




Replacements . 




Total Conversion. 




Deduct: Cost of Lapping Screenings —Tons 




Conversion Cost of Merchantable Pulp —Tons 




TOTAL MANUFACTURING COST OF LAPPED STOCK 
Add: Inventory—Beginning 







TOTAL . 




Deduct: Inventory—End 




TOTAL . 




Deduct: Used in Paper, etc.— Tons 




MANUFACTURING COST OF SALES —Tons 




SHIPPING EXPENSE . 




SELLING EXPENSE . 




ADMINISTRATION AND GENERAL EXPENSE.... 




COMMERCIAL COST OF SALES. 




NET INCOME FROM SALES. 




SALES . 




.- v;.- 






Page 28 


<- i* 


k 




































































































































































































EXHIBIT GG 


NEWSPRINT ROLLS 

Month of.191.. 


TIME RECORD .Machine No. 

Hours Run . 

Shut down for Repairs. 

Shut down for Power. 

Shut down for Machine Clothing. 

Shut down for Sundays and Holidays. 

Shut down for Other Reasons. 

TOTAL HOURS . 



4 


5 


6 



% OF 
STOCK 

QUANTITY 

AMOUNT 

COST PER TON 


PER TON 

TOTAL USED 

MONTH 

PERIOD 



OF PAPER 


TO DATE 

TO DATE 


MANUFACTURING COST OF 
UNFINISHED ROLLS: 

Stock: 

Ground Wood (Deckered Slush).. 
Ground Wood (Lapped) Own Make 
Ground Wood (Lapped) Purchased 

Sulphite (Deckered Slush). 

Sulphite (Lapped) Own Make .... 

Sulphite (Lapped) Purchased . 

Waste Paper. 

Fillers . 

Alum . 

Bleaching . 

Color . 

Sizing . 

Total Stock . 


Conversion: 

Labor . 

Steam Power .. 

Electric Power. 

Screen Plates . 

Wires . 

Machine Clothing . 

Belting . 

Lubricants . 

Repairs . 

Replacements . 

Depreciation . 

Taxes . 

Insurance . 

Manufacturing Burden. 

Total Conversion. 

TOTAL MANUFACTURING COST OF UNFINISHED 
ROLLS— Tons _ 

Deduct: Cost of Rolls not Finished— Tons _ 

ROLLS FINISHED— Tons _ 

FINISHING COST 

Wrappers . 

Cores . 

Sundry Material. 

Labor. 

TOTAL FINISHING COST. 

TOTAL MANUFACTURING COST OF FINISHED 

ROLLS . 

Gross Weight of Finished Rolls—Tons _ 

Add: Inventory—Beginning_ 

TOTAL . 

Deduct: Inventory—End_ 

MANUFACTURING COST OF SALES— Tons _ 

SHIPPING EXPENSE. 

SELLING EXPENSE . 

ADMINISTRATION AND GENERAL EXPENSE. 

COMMERCIAL COST OF SALES. 

NET INCOME FROM SALES. 

SALES . 


Page 29 







































































































































































EXHIBIT HH 


NEWSPRINT SHEETS 


• 

AMOUNT 

COST PER TON 

MONTH 

ENDED 

PERIOD 

ENDED 

MANUFACTURING COST OF SHEETS: 




Finishing Cost: 

I 















Total Finishing Cost. 




Total . 




Deduct: Value of Waste Paper— Tons 




TOTAL MFG COST OF SHEETS— Tons 




Adrl: Tnvpntory—Reginning 




TOTAL . 





Deduct: Inventory—End 




MANUFACTURING COST OF SALES— Tons 




SHIPPING EXPENSE . 




SELLING EXPENSE . 




ADMINISTRATION AND GENERAL EXPENSE. 




COMMERCIAL COST OF SALES. 




NET INCOME FROM SALES. 




SALES . 









Faye JO 












































































